EU, USA, and China tackle MHDT emissions

The European Union is paving the way for a greener future with its comprehensive set of policies promoting a shift towards Zero Emission Vehicles (ZEVs). A recent comparison of international strategies revealed that the EU boasts the most extensive set of initiatives among its peers.
The EU, with its all-encompassing blueprint, is making waves in the ZEV realm. At the heart of its green strategy are ambitious CO2 reduction targets. The union aspires for a notable 15% reduction by 2025, with sights set on a monumental 30% cut by 2030. Such environmental commitments are bolstered by significant ZEV sales targets. In a unified push, 11 European countries are rallying to boost Medium and Heavy Duty Truck (MHDT) ZEV sales. The pledge sees several nations vying for 100% ZEV sales by 2042, signalling a profound shift in vehicular priorities.

However, goals without resources are but mere wishes. Recognising this, the EU has earmarked colossal funds for research and development (R&D) to stay ahead in the ZEV innovation curve. A staggering €250 billion has been allocated for novel technological support, with the Horizon Europe R&D program further infusing €40 billion into the mix. Beyond the technological realm, economic incentives play a crucial role in driving ZEV adoption across member states. With countries like Austria offering up to 80% off the price tag for ZEVs and Germany reducing road tolls, the economic appeal of green vehicles in the EU is undeniable.

Across the Atlantic, the USA is carving its path in the ZEV landscape. Central to its strategy is a robust $430 billion policy, earmarking tax credits for new Battery Electric Vehicles (BEVs). Such incentives range up to $7.5k for Light-duty vehicles, making electric options more financially accessible to the average American. This financial support extends to the heavier MHDTs, reflecting a holistic approach to ZEV adoption. Furthermore, infrastructure is a key pillar of the USA’s green drive. Initiatives to fund ZEV corridors are in full swing, aiming to pepper 23 states with EV charging stations and hydrogen refuelling points. Yet, uncertainty lingers with a noticeable absence of specific ZEV policies beyond 2023, casting shadows on the nation’s long-term commitments.

China, a global powerhouse in manufacturing and technology, is not to be left behind. While specific post-2023 ZEV policies remain under wraps, the nation’s current stance speaks volumes. ZEV credit targets for manufacturers underline China’s commitment to green manufacturing. Additionally, a phased subsidy approach for New Energy Vehicles (NEVs) was operational until 2022, highlighting China’s strategic fiscal incentives for ZEV adoption. Notably, a four-year pilot program has been green lit, selecting certain cities for R&D support, particularly focusing on fuel cell EVs.

In conclusion, the triad of the EU, USA, and China is spearheading the global shift towards a sustainable vehicular future. Their diverse yet aggressive strategies not only signify their commitment to combating climate change but also set benchmarks for other nations. As the world watches, the combined momentum of these three giants is likely to propel the global community closer to a zero-emission reality.

Source: Impact Assessment of the Transition to Zero-Emission Trucks in Europe | BCG

Source: Impact Assessment of the Transition to Zero-Emission Trucks in Europe | BCG
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